June 23, 2017
CIBC completes acquisition of PrivateBancorp
Creates a strong cross-border platform to deepen client relationships
TORONTO -- CIBC today announced that it has completed the acquisition of Chicago-based PrivateBancorp, Inc. and its subsidiary, The PrivateBank.
"Today marks an exciting new chapter for both CIBC and The PrivateBank," said Victor Dodig, president and CEO, CIBC. "By combining the resources, capabilities and the talented teams of our two organizations, we are creating a strong cross-border platform for CIBC to serve a broader range of clients and deliver growth to our shareholders. We are delighted to welcome The PrivateBank's 1,300 team members to the CIBC family. Our shared passion and commitment to fostering a client-first culture, will serve us well as we work to build integrated U.S. businesses and establish CIBC as a strong, innovative relationship-oriented North American bank."
Based on the closing price on the New York Stock Exchange of CIBC's common shares on June 22, 2017 of US$80.95, the total transaction value is approximately US$5.0 billion and will be paid with approximately US$2.4 billion in cash and approximately 32.3 million CIBC shares. CIBC expects the transaction will be accretive to earnings per share within three years.
The U.S. region will operate under a unified CIBC brand, with rebranding activities beginning in the fiscal fourth quarter. Beginning in the fiscal third quarter, CIBC will report financial results for its U.S. region as a separate Strategic Business Unit.
As previously announced, Larry Richman will lead CIBC's U.S. region as Senior Executive Vice-President and Group Head, U.S. Region, and President & CEO, The PrivateBank, and will remain president and chief executive officer of The PrivateBank.
"On behalf of The PrivateBank team, we are delighted to be joining CIBC," said Mr. Richman. "From the very beginning, this transaction was about giving us added financial strength and the benefits of a larger banking enterprise to do more for our clients and our communities. This new combination will, over time, allow us to build a premier North American bank to deliver a broader set of products and services through our differentiated, relationship-based approach."